Negotiable Instruments Act, 1881
Sections 138 & 141—Dishonour of cheque—Non-compliance with mandatory requirements of Section 141 of the NI Act—Petition to quash criminal proceedings initiated against petitioner/accused who is the Executive Director of the Company—Statutory requirement under Section 141 of the Act mandates the arraignment of the company as an accused before vicarious liability can be imposed on its officers—Failure of complainant to implead company as an accused renders the proceedings against petitioner unsustainable in law—Criminal proceedings initiated against petitioner are quashed—Petition allowed.
[Paras 13 to 18]